GST Cell in MNRE

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Solar power tariff has hit an all-time low of Rs. 3.47 per unit in Tamil Nadu, TANGEDCO receives bid for 1500 MW

Solar power tariff has hit an all-time low of Rs. 3.47 per unit in Tamil Nadu. The tariff has gone below Rs. 3 per unit in many states, but this is the first time that a prospective investor has bid so low in Tamil Nadu.

As Tangedco opened bids for installation of 1,500MW solar power parks for 2017-18 on Friday , Bengaluru-based Raasi Green Earth Energy bid at Rs. 3.47 per unit to set up a100MW project. This is a steep fall from Rs. 7.01 per unit that was prevalent in the state in 2015-16.The tariff was hovering in the region of Rs. 4.5 per unit last year.

Tangedco has received bids for more than 3,400MW now.The Tamil Nadu Electricity Regulatory Commission (TNERC) has fixed a tariff of Rs. 4 per unit for this year.

The lowest solar power tariff in the country is Rs. 2.44 per unit in Rajasthan. But in all other states, either the land cost is cheap or land is being given by the state government or the discom itself.

“We will negotiate with other bidders to bring down their rates. Only those that match our conditions will be considered,” said a senior Tangedco official.

“NLC has bid for the entire capacity of 1,500MW . After the lowest bid was known, NLC has expressed its willingness to match it. They propose to set up the park in land reclaimed from mines,” said the official.

Rassi Green is headed by G Narasimhan, a former TMC MP from Krishnagiri constituency. “We came to know that our bid is the lowest. We plan to set up 100MW capacity at Paramakudi in Ramanthapuram district, where we have land,” Narasimhan told TOI.

Apart from acquiring land, the companies face problems in sourcing funds from banks and financial institutions because of high cost of funding.”Funds are available for solar projects in foreign countries at 4% to 5%. In India, it is 9%. Only the State Bank lowered the interest rate recently to 8%,” said Narasimhan, who also heads the Solar Power Companies’ Association.

With the introduction of GST, the cost of setting up solar power projects is set to increase.

“GST rate is 5% for solar modules. It sounds reasonable and consistent. But it was 0% earlier. The GST for engineering and construction services is fixed at 3%. The impact on investments is still not clear.Our current estimate is that the total project capital cost may rise by about 4%,” said a power expert.

Source: TOI

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MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO. LTD – Implementation of Goods & Services Tax (GST) in MSEDCL- General Awareness

All  Superintending Engineers, O&M and Civil Circles, MSEDCL.

Sub : Implementation of Goods & Services Tax (GST) in MSEDCL- General Awareness .

As we are all aware, the GST will be implemented w.e.f. 1st of July, 2017. Taxes which will be subsumed in GST are:

  1. Taxes currently levied and collected by the Centre:

a. Central Excise duty

b. Duties of Excise (Medicinal and Toilet Preparations)

  1. Additional Duties of Excise (Goods of Special Importance)
  2. Additional Duties of Excise (Textiles and Textile Products)
  3. Additional Duties of Customs (commonly known as CVD)
  4. Special Additional Duty of Customs (SAD)
  5. Service Tax
  6. Central Surcharges and Cesses so far as they relate to supply of goods and services
  7. State taxes that would be subsumed under the GST are:
    1. State VAT
    2. Central Sales Tax
    3. Luxury Tax
    4. Entry Tax (all forms)
    5. Entertainment and Amusement Tax (except when levied by the local bodies)
    6. Taxes on advertisements g. Purchase Tax
  8. Taxes on lotteries, betting and gambling
  9. State Surcharges and Cesses so far as they relate to supply of goods and services .

Some basic information on the GST, which will help us manage these changes that the GST will bring upon us, is provided below

Following are some requirements which are to be complied due to GST Law:

Invoice Rules : The Government has issued Invoice Rules which prescribe various information to be mentioned on an Invoice, Debit Note & Credit Note under GST. The Invoices submitted by all vendors need to be as per GST requirements. It is to be noted that an Invoice which does not contain required details as per GST shall not be accepted.(lnvoice Rules Copy Attached)

Vendor Master: Vendor master of all existing vendors will be replaced with new registration no called GSTIN. The GSTIN should be updated in Vendor master of ERP. It will be state-wise PAN­ based  15-digit  number.

  • The first two digits of this number will represent the state code as per Indian Census 2011
  • The next ten digits will be the PAN number of the taxpayer
  • The thirteenth digit will be assigned based on the number of registration within a state
  • The fourteenth digit will be Z by default
  • The last digit will be for check code

Eg. MSEDCL GSTIN Number is 27AAECM2933K1ZB.

Tax Codes: There will be a new set of tax codes defined for GST. The tax codes for GST are Central Goods and Service Tax (CGST), State Goods and Service Tax (SGST), Integrated Goods and S ervice Tax (IGST). GST slabs rate are 5%, 12%, 18% & 28%. Example of existing and GST taxes a pplication is given in attached annexure 1.

CGST 2.50% 6% 9% 14%
SGST 2.50% 6% 9% 14%
IGST 5% 12% 18% 28%

Material Master Updation :

HSN Code – all Material items have to be associated with the Harmonized System of Nomenclature (HSN) for all the taxes. Currently, HSN codes are known as Excise Tariff Codes, and the reporting under GST is based on HSN codes.

:SAC Code – Services accounting codes are associated with the supply of services, and they are similar to service categories in the current service tax regime.

Purchases from Unregistered Dealers: For Purchases and Services from unregistered dealers GST will be applicable under Reverse Charge Mechanism (RCM) & MSEDCL have to pay the tax liability which costs to the company . Hence, the purchases and services shall be restricted from registered dealers.

Savings Area : One of the key aspect of GST regime is removal of cascading impact of Taxes which is expected to lead a reduction in cost of procurement . It is important to analyse the irnpact of such savings/additional credit which may accrue to the suppliers/service providers. It is e>

  1. Any direct tax savings like- Excise, CST, Entry Tax, Octroi to be automatically  removed from material  cost.
  2. Ask all your suppliers and service providers to be GST registered and hence pass benefit of GST fully in
  3. Any other benefit.

Reconciliation Sales & Purchase: Supplies declared by the supplier in his GST returns would be directly available to Purchaser. In case of any mismatch in supplier sales returns and Purchasers purchase register declared by the provider and recipient, the GST Network (GSTN) would automatically provide a mismatch report. The mismatch needs to be corrected  by the next month in which the same is notified. If mismatch is not corrected, the credit availed would reduce automatically and there would be interest obligation as well on the recipient (Purchaser) . Probable errors may include for mismatch are like Invoice not uploaded in time and Invoice uploaded incorrectly. Hence, booking of Invoices in correct manner is necessary to avoid future consequences .

Amendments in Agreements: All terms and conditions pertaining to various taxes of Excise, Service Tax, VAT, etc; shall be changed into GST. Hence it may be amended as GST w ith applicable rate, due care need to be taken for ongoing contracts . Head office is in the process of defining terms and conditions of the various contracts issued in respect of GST act.


!Return Form What to file Date Of Returns


Details of Sale of taxable goods and/or services effected  

10th of the next month



Details of Purchases of taxable goods and/or services.  

15th of the next month



Monthly return on the basis of finalization of details of Sale and Purchases along with the payment of amount of tax .  

20th of the next month




Annual Return

31st December of next financial year


Filling of Returns: the various returns are required to be furnished under the new GST law are as follows :

The above returns will be filled at Head Office level centrally consolidating the data available in SAP. Further, the payments of the GST in respect of all the offices in Maharashtra will be made centrally at H.O. based on the Invoices booked by the field offices in SAP.

Payments of Existing Taxes : MSEDCL offices has to pay and clear all liabilities up to June 30,2017 to the Government for all existing Taxes like Service Tax, VAT, etc. which are subsumed under GST as per earlier practice on prescribed dates.

We are sure together we can ensure a successful transition to GST Act. In case you have any query please feel free to get in touch through Email on

Please note that the above guidelines are only for the purpose of implementation of GST on priority. However, the rules and regulations as per GST law will prevail over the guidelines .

Click here for the full document

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REVISED GST RATE FOR CERTAIN GOODS [As per discussions in the 16th GST Council Meeting held on 11th June, 2017]




Chapter / Heading / Sub- heading / Tariff item Description of goods Earlier GST rate approved by the GST Council Revised GST Rate approved by the GST Council
1. 0506,  0507


Bones and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal, etc. 5% 0%
2. 0801 Cashew nut 12% 5%
3. 0801 Cashew nut in shell 12% 5%

[under  reverse charge]

4. 0806 Raisin 12% 5%
5. 1104 Cereal grains hulled 5% 0%
6. 1702 Palmyra jaggery 18% 0%
7. 20

[All goods]

Preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly 18%/12% 12%
8. 2103,  2103

00, 2103 90


Ketchup & Sauces [other than curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings], Mustard sauces 18% 12%
9. 2103 90 10,

2103 90 30,

2103 90 40

Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings 28% 18%
10. 2106 Bari made of pulses including mungodi 18% 12%
11. 2201 90 10 Ice and snow 12% 5%
12. 2501 Salt, all types 5% 0%
13. 27 Bio gas 12% 5%
14. 28 Dicalcium phosphate (DCP) of animal feed grade conforming to IS specification No.5470 : 2002 12% 0%
15. 30 Insulin 12% 5%
16. 29, 30, 3302 (i)     Menthol and menthol crystals,

(ii)    Peppermint (Mentha Oil),

(iii)  Fractionated / de-terpenated mentha oil (DTMO),

(iv)  De-mentholised oil (DMO),

(v)    Spearmint oil,

(vi)  Mentha piperita oil

18% 12%






Chapter / Heading / Sub- heading / Tariff item Description of goods Earlier GST rate approved by the GST Council Revised GST Rate approved by the GST Council
17. 3304 20 00 Kajal [other than kajal pencil sticks] 28% Nil
18. 3304 20 00 Kajal pencil sticks 28% 18%
19. 3307 Agarbatti 12% 5%
20. 3407 Dental wax 28% 18%
21. 3822 All diagnostic kits and reagents 18% 12%
22. 3926 Plastic beads 28% 12%
23. 3926 90 99 Plastic Tarpaulin 28% 18%
24. 4202 (i)       School satchels and bags other than of leather or composition leather;

(ii)     Toilet cases [4202 12 10];

(iii)    Hand bags and shopping bags of artificial plastic material [4202 22 10], of cotton [4202 22 20], of jute [4202 22 30], vanity bags [4202 22 40];

(iv)    Handbags of other materials excluding wicker work or basket work [4202 29 10].

28% 18%
25. 4820 Exercise books and note books 18% 12%
26. 4823 Kites 12% 5%
27. 4903 Children’s’  picture,  drawing  or  colouring books 12% Nil
28. 57 Coir mats, matting and floor covering 12% 5%
29. 65

[All goods]

Headgear and parts thereof 28% 18%
30. 6703 Human hair, dressed, thinned, bleached or otherwise worked 28% 0%
31. 68 Fly ash blocks 28% 12%
32. 6810 11 90 Pre cast Concrete Pipes 28% 18%
33. 6906 Salt Glazed Stone Ware Pipes 28% 18%
34. 7015 10 Glasses  for  corrective  spectacles  and  flint buttons 18% 12%
35. 71 Rough precious and semi-precious stones 3% 0.25%
36. 7607 Aluminium foil 28% 18%






Chapter / Heading / Sub- heading / Tariff item Description of goods Earlier GST rate approved by the GST Council Revised GST Rate approved by the GST Council
37. 8215 Spoons,    forks,    ladles,    skimmers,    cake servers, fish knives, tongs 18% 12%
38. 8308 All goods, including hooks and eyes 28% 18%
39. 84 Pawan Chakki that is Air Based Atta Chakki 28% 5%
40. 84 Fixed Speed Diesel Engines 28% 12%
41. 4011 Rear Tractor tyres and rear tractor tyre tubes 28% 18%
42. 8708 Rear Tractor wheel rim, tractor centre housing, tractor housing transmission, tractor support front axle 28% 18%
43. 8423         &


Weighing Machinery [other than electric or electronic weighing machinery] 28% 18%
44. 8443 Printers [other than multifunction printers] 28% 18%
45. 8482 Ball bearing, Roller Bearings, Parts & related accessories 28% 18%
46. 8504 Transformers Industrial Electronics 28% 18%
47. 8504 Electrical Transformer 28% 18%
48. 8504 Static Convertors (UPS) 28% 18%
49. 8521 Recorder 28% 18%
50. 8525 CCTV 28% 18%
51. 8525 60 Two-way  radio  (Walkie  talkie)  used  by defence, police and paramilitary forces etc. 28% 12%
52. 8528 Set top Box for TV 28% 18%
53. 8528 Computer monitors not exceeding 17 inches 28% 18%
54. 8539 Electrical Filaments or discharge lamps 28% 18%
55. 8544 Winding Wires 28% 18%
56. 8544 Coaxial cables 28% 18%
57. 8544 70 Optical Fiber 28% 18%
58. 8472 Perforating or stapling machines (staplers), pencil sharpening machines 28% 18%
59. 8715 Baby carriages 28% 18%
60. 9002 Intraocular lens 18% 12%
61. 9004 Spectacles, corrective 18% 12%






Chapter / Heading / Sub- heading / Tariff item Description of goods Earlier GST rate approved by the GST Council Revised GST Rate approved by the GST Council
62. 9017 Instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, callipers) 28% 18%
63. 9403 Bamboo furniture 28% 18%
64. 9504 Playing cards, chess board, carom board and other board games, like ludo, etc. [other than Video game consoles and Machines] 28% 12%
65. 9506 Swimming pools and padding pools 28% 18%
66. 9603 10 00 Muddhas made of sarkanda and phool bahari jhadoo 5% 0%
67. 9704 Postage    or   revenue    stamps,    stamp-post marks, first-day covers, etc. 12% 5%
68. 9705 Numismatic coins 12% 5%
69. 4823 90 11,

8472, 9101,

9102, 9021

Braille paper, braille typewriters, braille watches, hearing aids and other appliances to compensate for a defect or disability

[These goods are covered in List 32 appended to notification No.12/2012-Customs, dated 17.03.2012 and are already at 5% GST rate (Chapter 90)]






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GST for Solar at 5%, Govt issues clarification

The government will levy a 5 per cent tax on all equipment required for generating solar power compared with nil duty now, a government official clarified, putting an end to confusion about the new taxation policy for the industry after its landmark tax reform.

“All solar equipments and its parts would attract 5 per cent GST only,” Revenue Secretary Hasmukh Adhia said in a tweet on Sunday, contrary to the initially planned two tax slabs of 5 per cent and 18 per cent.

India, the world’s third biggest greenhouse gas emitter, has set a target to produce 100 gigawatts of solar power in five years to fuel its economic expansion while reducing its carbon footprint.

A flat 5 per cent tax on all solar power equipment will put the sector on par with domestic coal from July 1 and make solar energy generation more expensive.

The 5 per cent tax, however, is in contrast to a previous notification that had fixed an 18 per cent tax on photovoltaic cells and panels, which account for a bulk of solar power generation costs.

Domestic coal sales now attract a 11.69 per cent duty. State-run Coal India Ltd, saddled with millions of tonnes of unsold coal, is expected to be the biggest beneficiary of the decision.

A tax on solar parts could hurt the young and booming industry, which relies heavily on cells imported from China. Solar tariffs in India had fallen to a record low of 2.44 rupees ($0.0378) per unit earlier this month.

India is extending capital subsidies and cheaper loans for clean energy to help meet Prime Minister Narendra Modi‘s goal of raising renewable energy capacity by more than five times in the next five years to fight climate change.

Solar power generation capacity in India has more than tripled in less than three years to over 12 GW, helped by lower module prices and borrowing costs. ($1 = 64.5400 Indian rupees)

Source: ET

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GST may push up cost of solar power projects

GST may push up cost of solar power projectsThe goods and services tax may increase solar energy project costs by 12%-18% and generation costs by 40-50 paise per unit, some industry leaders said, although the government said the new taxation regime won’t have much of an impact on them.

However, officials said even if costs increase, it won’t affect project economics because the additional charges can be passed on to customers. “Following GST, solar projects will be about 18% costlier on an average, while cost of generation would go up by around 20%. We have estimated the incidence of GST to be around 23%-25% on various inputs for the segment,” said Ratul Puri, chairman, Hindustan Power Projects.

“It would require project developers to go back to banks for additional funding for projects under construction. It might require a minimum of three months to get additional funding, thus delaying projects.” Power, coal, renewable energy and mines minister Piyush Goyal had said earlier the GST rates would not have much impact on his sectors.

Sunil Jain, CEO at Hero Future Energies, said solar modules, which weren’t taxed earlier, will have an 18% levy, while inverters – a major component in solar projects used to convert direct current into alternating current – would now be taxed at 28% instead of zero. Taxes on cement and other materials have been increased, he added.

“Our calculation suggests that project costs would go up by at least 16% on an average, since electricity has been excluded from GST and thus would not qualify for input tax credit. This translates into a 40-50 paise per unit rise in generation costs,” he said. “The new regime will result in an increase of 18% in module cost, about 12% in inverter cost and 3% in all service costs – increasing overall project cost by about 12%,” said Vinay Rustagi, managing director, Bridge to India, a consulting firm. “New rates would hit more than 10 GW of ongoing utility scale projects and pose a threat to their viability.”

Ashvini Kumar, managing director of Solar Energy Corporation of India, the company that arranges solar project auctions on behalf of governments, doesn’t anticipate any stumbling blocks. “Almost all power purchase agreements include a clause that allows hikes or declines in power generation costs as a result of change in laws – GST in this case – to be passed on to consumers,” Kumar said. “The math behind tariffs quoted by developers in successive auctions thus remains intact since they would be able to pass this on.”

Source: ET

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Utility-Scale Solar Photovoltaic Power Plants a project Developer’s Guide

India is now a hot bed for Solar globally but is quality a casualty in this race for power, use this document by IFC to ensure that quality is paramount or disaster can strike anytime.

IFC Solar PV Design Guide 2015

Table of Contents






























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